{"id":2247,"date":"2020-03-26T13:43:41","date_gmt":"2020-03-26T18:43:41","guid":{"rendered":"https:\/\/www.sunbeltnetwork.com\/west-palm-beach-fl\/?p=2247"},"modified":"2023-09-27T16:24:31","modified_gmt":"2023-09-27T16:24:31","slug":"should-i-buy-a-franchise-or-an-existing-business","status":"publish","type":"post","link":"https:\/\/www.sunbeltnetwork.com\/west-palm-beach-fl\/should-i-buy-a-franchise-or-an-existing-business\/","title":{"rendered":"Should I Buy a Franchise or an Existing Business?"},"content":{"rendered":"

When you are seeking to purchase a business, you will have two main options — buying an existing one that someone else started, or buying a franchise that a corporation has set up.<\/p>\n

While each of these scenarios comes with some built-in benefits, there are also some potential drawbacks — or, rather, challenges — as well. Before you make a decision on which option would be best for you, you need to understand some of the biggest advantages and disadvantages of both.<\/p>\n

Here are the more common ones:<\/em><\/h4>\n

Existing Business Advantage: You Get More Control<\/strong><\/h4>\n

One of the great things about purchasing an existing business is that you will have complete control over all major decisions. Once the purchase is official, you will have complete autonomy to take the business in whatever direction you want, and make every decision you think is best to accomplish that.<\/p>\n

Existing Business Disadvantage: You Won’t Have Much Support<\/strong><\/h4>\n

A potential downside to buying an existing business is that same autonomy. With that complete control also comes the fact that you won’t have a lot of support from anyone else. Sure, you’ll have your staff to support the day-to-day activities of your business, but you won’t have the guidance of anyone else on how to best run your business.<\/p>\n

Franchise Advantage: You Get a Lot of Support<\/strong><\/h4>\n

Perhaps the best part about buying a franchise is that you will be receiving a lot of support from the corporation that set it up. In addition to any product and services you’ll be providing, the corporation will also most likely provide you with training manuals, in-person training and even tried-and-true systems for completing the essential day-to-day tasks.<\/p>\n

Franchise Disadvantage: You Don’t Get Full Control<\/strong><\/h4>\n

As a franchise owner, you’ll have some control over how your specific location fares, but you won’t have complete say over how you run your business. The corporation will set a majority of the policies and the procedures for how you can run your business and how you can market it, for example, as they are concerned with not only your success but maintaining the reputation of the overall brand.<\/p>\n

Existing Business Advantage: You’ll Have More to Choose From<\/strong><\/h4>\n

The nice part about purchasing an existing business is that you’ll have more choices as to the type of business you can buy. There aren’t readily-available franchises in every industry in every region of the country. If you want to purchase a specialty retail store, for example, you may not be able to find a franchise for that in your area.<\/p>\n

You’ll also have more of a choice when it comes to investment levels. A lot of franchises require a significant investment of money just to purchase the rights to open a location.<\/p>\n

Existing Business Disadvantage: They Are Harder to Find<\/strong><\/h4>\n

Unless something perfect falls into your lap, you may find it difficult to purchase an existing business quickly. Businesses don’t post “For Sale” signs in their windows like homeowners do with yard signs. Finding a viable business opportunity in the industry and location you want may prove challenging and require a some digging.<\/p>\n

Franchise Advantage: They Post Opportunities Everywhere<\/strong><\/h4>\n

Unlike an existing business, corporations that own franchises have a vested interest in letting the general public know that their business is for sale. They’ll often post notices on their websites with available franchise opportunities, and even give detailed information on what it takes to apply for a franchise and how much it will cost.<\/p>\n

Franchise Disadvantage: You’ll Have Less to Choose From<\/strong><\/h4>\n

A big downside to franchises is that they aren’t available everywhere and in every industry. If you live in a less dense region of the country, for example, you might have trouble finding any franchise opportunities at all, other than online. Even if you live in a more densely-populated region, the franchise opportunities that do exist may be in industries that you’re either not familiar with or not interested in.<\/p>\n

Lessons to Be Learned<\/strong><\/h4>\n

The major lesson to be learned from this exercise is that you need to do a true assessment of your situation before deciding whether buying a franchise or an existing business would be right for you. This includes weighing both the pros and cons above, as well as your family situation, your location and the financial commitment you’re interested in making.<\/p>\n

While purchasing a franchise and purchasing an existing business do have a lot of similarities, there are also a lot of differences, both in terms of how you’ll acquire the business and how you’ll run it after.<\/p>\n

Sunbelt Business Brokers of West Palm Beach<\/a> provides dedicated business brokerage services for all of your buying and selling\u00a0needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing,\u00a0Suite 216 Palm Beach Gardens, FL 33410 or contact us<\/a> at\u00a0(561) 832-9222. View available\u00a0Businesses for sale in South Florida.\u00a0<\/a><\/p>\n

Follow us on Facebook<\/a> or see our recent posts on LinkedIn<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

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